“Many of the poorest tenants will benefit and with government support, landlords can improve their properties at no upfront cost.”

The UK Green Building Council hailed the move as the “single most important piece of green legislation to affect homes and buildings”.

Acting CEO John Alker added: “The Government deserves huge credit for sticking to its guns as it provides the impetus needed to upgrade our worst-performing, most energy-hungry rented properties and will help to kick-start a multi-million pound market in energy efficiency products and services in the UK.”

The Government said it is also drawing up plans for a £25 million fund to support the installation of first-time central heating systems in off-grid homes.